‘Debt consolidation’ can mean many things, but the basics are: any effort by a person to convert multiple debts into one on a monthly basis with a view to eventually paying off those debts.
Taxes owing and unfiled tax returns are a serious issue in Canada. Canada Revenue Agency (CRA) has always taken a tough approach to individuals or businesses who are in arrears, either through unpaid taxes or having not filed returns. Filing tax returns is a statutory duty under the Income Tax Act (ITA) in Canada. Failure to do so can land you in trouble with CRA.
This rather broad term can mean many things depending on the situation, the person in question or what the desired outcome is. It also is often misused by people when they are referring to a financial course of action.
As a small business owner you have worked hard to grow your business.
You have concentrated on building a client base by offering excellent services in a timely, reliable manner.
The tax system in Canada is a self reporting process. It places the taxpayer in a position of substantial trust and power.
This means that Canada Revenue Agency (CRA) is dependent on taxpayers to be honest in their reporting obligations.
“You can’t fight City Hall.”
That’s what they say, isn’t it? And that counts double for the federal government for a lot of people. Canada Revenue Agency (CRA) has long been viewed by Canadians as the ‘godfather’, that enormous, all-powerful entity embodying for many all that is bad in government.
Absolutely you can. About 58,000 people did just that in 2015 in Canada. Income tax arrears are eligible to settle with Canada Revenue Agency (CRA) as a consolidation solution (along with all other unsecured debts such as credit cards and lines of credit) in the form of a proposal. CRA are not only just a likely to reduce the principle (and ALL of the interest) as other creditors, but in most cases they are even MORE likely to participate, since this acts as a form of collection for them in their overworked portfolio.
Every year, a certain number of unsuspecting Canadian taxpayers fall victim to the rather predatory practices of those who push charitable “donation” schemes which are presented as legitimate tax shelters.
There is a disturbing trend in Canadian personal finance: the indebted senior. Unfortunately seniors represent the fastest-growing demographic in Canada for debt accumulation.
So why is this happening? I thought seniors had money.